"CJ CheilJedang Strengthens US Business Competitiveness by Integrating Schwan's and CJ Food USA"

[Asia Economy Reporter Eunmo Koo] CJ CheilJedang announced on the 17th through a public disclosure that it will integrate Schwans and its U.S. food business corporation CJ Food USA (CJFU) to streamline and strengthen competitiveness in its North American food business.

Schwans is a U.S. frozen food company acquired by CJ CheilJedang in early 2019, and CJFU is a local corporation operating CJ CheilJedang's U.S. food business, including Bibigo.

A CJ CheilJedang official stated, "As the scale of the food business in the North American region grows and market position strengthens, the need to maximize synergy between business entities has emerged, leading to this decision."

CJ CheilJedang plans to utilize the sales platforms of both companies to further discover growth opportunities based on 'K-Food' and integrate infrastructure, systems, and human resources to enhance operational efficiency.

After the integration, CJ CheilJedang expects Schwans to serve as the headquarters (HQ) for the North American food business, enabling consistent business strategies across all distribution channels and faster decision-making.

Meanwhile, the integration of the two companies will be conducted in the form of a share exchange between subsidiaries without additional investment from CJ CheilJedang. CJ America (CJA), the parent company of CJFU, will transfer all CJFU shares to Schwans, and Schwans will issue new shares equivalent to those shares to CJA.